Sorry I didn’t get to blog Monday and Tuesday. Catchup and getting my car serviced didn’t give me any time. Anyway, at least I didn’t fall off the jetski on vacation. It was a lot of fun.
Brian’s Tax Musings
Did you know that if you are on medicare and pay for Part B coverage (either separately or as a reduction in your social security benefits) that if you are self-employed you can take the deduction as self-employed health insurance starting this year. This means you can directly reduce your adjusted gross income by it and not have to take it as an itemized deduction. Before this year you had to set up a 105 Medical Reimbursement Plan to get this treatment.Remember, just like regular health insurance, if you have an S Corporation to get the deduction you have to reimburse the Over 2% Shareholder for the Part B Premiums, then have the corporation deduct the insurance as salary (there is a place to put it on the W2). Then you reduce your additional salary by the self employed health insurance deduction. This is the only way to get this treatment for an S Corporation.Also, I will be in Laughlin from today for rest of the week. Will make my next blog on July 18.
Brian’s Tax Musings
If you have a home office, make sure it is used exclusively as an office, Minimal personal use of the office space will deny the home office deduction. De minimus personal use (you store a vacuum cleaner in the office or you have to walk through the office to go to the bathroom) is allowed, but the law is set up as pretty much all or nothing.